Why business innovation is important?
XXI is world-changing very fast and companies must innovate to stay relevant. Successful business innovation means generating higher profits and giving an advantage over competitors. Innovation is about finding new solutions it can involve new techniques, technology, and ways to work. It is a part of business strategy.
By Mary K. Pratt (2017), innovation is an organization's process for introducing new ideas, services, or products. Business innovation improves a product or solves the problem and that way reach new customers. Susan Ward (2020) says that business innovation is a process of making something new or improving old processes. By Will Purcell (2019), innovation is a concept, refers to the process that a company undertakes to conceptualize new products, ideas or to approach existing products or ideas. Also, this term is used to describe the latest technological progress. There are many types of innovations that a company might pursue. Here are some business innovation strategies:
Open innovation is when companies use internal and external ideas to help advance their operations.
Disruptive innovation is when new products or services start at the bottom of the marketplace but end up eventually moving up and displacing their competitors. Reverse: Reverse innovation is when products or services are developed first for use in developing nations. Incremental: Incremental innovation is when companies make small changes to products and services to ensure they keep their spot in the marketplace. Breakthrough: Breakthrough innovation, also commonly referred to as radical innovation, is developing completely new ideas and concepts that don't build off any existing products, services, or operations.
For most companies is important to be innovative to keep with the market pace of change. The company must be innovative to stay relevant and not be left behind. By Noushka Green (2019), the main key element of innovations is that it drives revenue for the company.
Why is business innovation important?
The main purpose of business innovation is to create value in the organization. Business innovation has a lot of benefits. For example:
Having a Unique Selling Point
When innovation is used in the right way it can give you an advantage and more positive exposure in the media. Usually, customers are more willing to pay some extra money for something new and different that can provide the market. Something that can provide a unique selling point, that competitors do not have to.
Helps to grow
Everybody can choose that is more suitable for his/her business. When chosen is to improve your product or business model and it helps to grow up business very quickly.
Keeps Organization Relevant
The world-changing every day and for your business to remain relevant. Will Purcell (2019), provides facts on how fast technology changing. • 90 percent of the world’s data has been created in the last couple of years. • More than 570 new websites are created every minute. These changes have led to a new age of innovation across business industries.
Making the Most of What you Have
Innovation is not always about something new, sometimes it is about something old. Businesses can focus on the existing product or service and try to improve efficiency. Such way businesses increase profits and cut down the amount of waste.
Helps to Differentiate Business
It is a good chance to increase your brand awareness. Therefore, the more your business innovates, the more unique it becomes.
The Pros and Cons of Business Innovation
Business innovation has not only benefits but and risks. The organization needs to weigh those risks against the business benefits. Benefits include the organization's growth, new cooperation opportunities, brand awareness, new improvements in the product or services. If businesses don’t innovate, they won’t be able to survive in the market.
Is your business innovative for your customer? AKIS Technologies has an innovative solution for the business – queue management system. It facilitates customer service in various institutions and provides customer-oriented services.
https://www.northeastern.edu/graduate/blog/importance-of-innovation/ https://www.wework.com/ideas/professional-development/creativity-culture/what-is-business-innovation https://www.thebalancesmb.com/business-innovation-definition-2948310 https://searchcio.techtarget.com/definition/business-innovation